China one move put India’s Rs 2756892800000 at stake! this industry is in danger due to…
China has halted shipments of rare earths to India and blocked the export of capital equipment which can affect India's electronics manufacturing growth.

China’s most up-to-date actions are raising severe considerations for India’s electronics substitute. Constant with a letter from the synthetic physique India Cell and Electronics Affiliation (ICEA) to the Indian govt, China’s measures can disrupt India’s offer chain and weaken its role as a world manufacturing hub.
Informal Trade Restrictions By China
China has imposed several informal substitute restrictions on India which is a risk to India’s rising electronics sector. Industry leaders comprise expressed fears that this may perchance negatively impact exports. India had online page online a target of $32 billion in smartphone exports by the dwell of FY2026, nonetheless China’s tactics can derail this purpose. In FY2025 on my own, India produced digital goods price $64 billion.
ICEA, which counts Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex, and Tata Electronics amongst its people, warned that these Chinese language actions are increasing operational costs for companies and reducing self assurance in India’s electronics export potential.
Why Does China Target India?
China’s response became after India’s posthaste development in electronics exports. Since 2020, India has elevated its smartphone manufacturing. In FY2025, India produced $64 billion price of products and exported $24.1 billion of that. In FY2015, India became at 167th in smartphone exports. Right this moment time, it’s amongst the pause exporters, with expectations of reaching $32 billion in exports by FY2026.
One other predominant trigger for China is Apple’s shift in manufacturing from China to India. Earlier it became dependent on China for iPhone production nonetheless Apple has been transferring operations to India since 2020 under the Production-Linked Incentive (PLI) procedure. Thru companions like Foxconn and Tata Electronics, Apple now manufactures about 20% of its world iPhones in India which has made dragon angry.
$155 Billion Target at Threat
China’s most up-to-date moves can abate India’s prolonged-length of time purpose of reaching $155 billion in electronics manufacturing by 2030. ICEA warned that if the fresh disruptions are now not resolved, India’s fragment in world exports will decrease and may originate it refined for them to enact their target.
China’s actions are causing operational challenges, better production costs, and disruption inner India’s electronics sector. For occasion, producing certain parts in the community and sourcing them from Japan or South Korea is 3 to 4 instances more expensive than importing from China.
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